Photo from Unsplash by Nadine Primeau
3 in 5 APAC consumers consider health, well-being impacts in food purchase
As a result, functional food products are seeing increasing demand.
The increasing demand for functional food products in the Asia Pacific will transform the foodservice sector as consumers become more conscious of lifestyle-related diseases and preventive healthcare, according to a GlobalData report.
GlobalData said that the awareness is pushing consumers to seek healthy food, with 62% of APAC consumers claiming their purchases are often or always influenced by the impact of a product/service on their health and well-being.
“Despite the waning of COVID-19 concerns, APAC consumers are gravitating towards natural, organic, and functional food products that are perceived to help in alleviating health concerns,” said Priyanka Jain, Consumer Analyst at GlobalData.
ALSO READ: Demand for convenient food drives PH QSR market
The APAC food market with health & wellness attributes saw a compound annual growth rate of around 7% to 9% from 2017 to 2022.
However, premium prices remain a barrier to accessing the health & wellness-attributed food sector, said Tim Hill, Key Account Director, GlobalData Singapore.
“Moreover, amid high inflation and the prolonged Russia–Ukraine conflict, food manufacturers are under pressure to pass on these high input costs to consumers to conserve their margins,” Hill said.
“Owing to the cost-of-living crisis, these frugal consumers are switching to cheaper brands and labels or cheaper stores. The limited product awareness is also undermining the segment’s growth prospects,” he added.
